The QQQ gaped up nicely this morning clearing the highs from last Thursday and Friday and setting the high of the day by 9:40 am @ 66.37. From there, every pull back to the 20 ma has been sold basically a trend day lower. Our currently low is 65.64 which was put in at 3:15 pm. My first trade was RIG which had a nice bullish gap that looked a little novice since Thursday and Friday had put in green bars on the daily chart. Since price rallied for the first 5 minutes and the bar closed green with a topping tail, I decided to use my 5 minute gap sell strategy if the 5 minute low was taken out. As price action took out the low I entered the play short which made it to it’s first target at .50 cents where I covered 1/2 of my shares. Price looked lower but my first target bar on the 5 minute chart closed with a topping tail and the high was taken out, when I decided to cover the rest of my shares. This is a choice I make but I could leave the rest of the shares on with the original stop. If I had, I would have been handsomely reward as RIG sold off lower with the Q’s the rest of the day…
RIG